Generally, drug discovery has been a vertically oriented business with the entire value chain—from basic research to clinical trials, manufacture and marketing—carried out by a single pharmaceutical corporation. However, recently years have seen a shift towards a more horizontal, collaborative model. Companies and institutions with specialized strengths in specific research stages or technological fields are working together to advance the drug discovery process. This model is more efficient than an isolated, in-house process as it speeds up R&D and improves probability of success, leading in turn to a competitive advantage. Co-creation between several organizations like this is a drug discovery ecosystem, a system of collaboration which fosters sustained innovation in the challenging field of drug discovery R&D.
Drug discovery ecosystems have been established in both Europe and the United States, promoting cooperation among various players in the pharmaceutical industry. The Japanese government is also setting policy goals in this area, launching investments and holding the Gate Opening Summit for Innovative Drug Discovery in July 2024.
One development in the world of pharmaceuticals making drug discovery ecosystems so important is the diversification of modalities. Modalities are treatment methods, including things like small molecule compounds, antibody drugs, peptide drugs, nucleic acid drugs, cell drugs, gene therapy and regenerative medicine. Developing new modalities not only requires highly advanced, specialist technology and knowledge on the action of drugs towards diseases, but also faces greater challenges regarding safety, manufacturing, regulation and approval processes. Drug discovery ecosystems are utilized by many pharmaceutical companies to overcome these challenges by seeking the seeds of new pharmaceuticals from drug discovery ventures and academia then entrusting manufacturing process development to contract manufacturing organizations.
Changes in unmet medical needs are also making R&D of new drugs challenging. Needs for lifestyle-related diseases, which have many patients, are being met, but rare diseases and cancers are increasing in needs. Discovering a drug that is individually suited to diverse causes and small numbers of patients is a big challenge in terms of acquiring technology, equipment, and specialized personnel. The drug discovery ecosystem helps to support this process, enabling us to approach diseases that were previously incurable.

Teijin Pharma is prioritizing innovation via drug discovery ecosystem, promoting alliances with pharmaceutical companies around the world from the research stage onwards.
One avenue is the out-licensing of potential new drugs discovered by Teijin Pharma. These investigational candidates are licensed to major pharmaceutical companies around the world who then verify the efficacy and safety of the candidates in clinical trials, before initiating commercialization on a global scale. In return, Teijin Pharma receives an initial payment when the license agreement is made, milestone payments based on developmental progress and royalty payments on sales. By entrusting our investigational candidates for new drugs to suitable partners, we can deliver new therapeutic drugs to more patients as quickly as possible.
In recent years we have identified an antibody candidate for the treatment of Alzheimer’s disease, which has become a burden to the aging global population. This anti-tau antibody developed by Teijin Pharma is designed specifically to bind to abnormally hyperphosphorylated tau proteins, believed to be one of the causes of Alzheimer’s disease, and was licensed to American company Merck & Co., Inc., Kenilworth, NJ USA. Clinical trials began in 2022.
In 2024 a Teijin Pharma investigational candidate for the treatment of narcolepsy, a rare sleep disorder, was licensed to French company Bioprojet. This candidate compensates for a deficiency in orexin, a neurotransmitter that controls the sleep-awake cycle. Through this partnership with Bioprojet, which has a proven track record of developing and commercializing narcolepsy treatment drugs, we hope to contribute to improving quality of life for patients around the world.
In 2023, Teijin Pharma announced the establishment of a new joint venture company to provide research capabilities and support services to partners in the drug discovery field.
As an independent venture, the new company is founded on Teijin Pharma’s assets, such as infrastructure, research data and human resources, and works closely with customers to advance projects in the discovery stages with the aim of realizing innovation together.
Founded together with Axcelead Inc., owner of a group of companies that make up Japan’s first integrated drug discovery platform, Axcelead Tokyo West Partners Inc. (Axcelead TWP) was established in April 2024. Axcelead Inc. is an ideal partner for Teijin Pharma, controlling subsidiaries including Axcelead Drug Discovery Partners, Inc., a world-class drug discovery solutions provider and ARCALIC, Inc., the Asia-Pacific region’s first GMP-compliant*¹ integrated mRNA vaccine CDMO*². With this joint venture, Axcelead Inc. will promote innovation in pharmaceutical companies and drug discovery players both in Japan and overseas, leveraging the deeply established research expertise and drug discovery technologies cultivated over the past 50 years by Teijin Pharma.
*1 Good Manufacturing Practice: Compliance with pharmaceutical manufacturing and quality control standards as established by the relevant agencies
*2 Contract Development and Manufacturing Organization

From choosing new targets for drug discovery, such as target proteins on which drugs act, to obtaining new investigational candidates, Axcelead TWP will provide support to organizations both in Japan and overseas by extending and evolving its drug discovery platform in fields such as chemistry, pharmacology, pharmacokinetics and safety.
Simultaneously, Teijin Pharma’s drug discovery research will continue to explore new areas of discovery, conducting surveys on medical needs, initial research experiments and designing compounds using computational approaches including AI.
Although operating independently of each other, with the necessary information security measures in place, Teijin Pharma and Axcelead TWP both conduct research at the Teijin Tokyo Research Center in Hino City, Tokyo, actively promoting the partnership to generate innovation that tackles unresolved medical issues.
Teijin Pharma is also actively pursuing open innovation including collaborative research activities with academic institutions and startups in Japan, and drug discovery ventures in China and Europe. We will collaborate with partners who share our values, seeking to provide innovative new drugs to patients around the world as quickly as possible and utilizing the drug discovery ecosystem to produce solutions that improve quality of life for patients everywhere.

For more information visit Teijin Pharma Research & Development
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